Renault is planning to build a rival to the Tata Nano to claim the title of the world's cheapest new car.
Called the ULC, which stands for Ultra Low Cost, Renault insiders say the car is likely to hit the roads of India in 2011.
The ULC is being designed in partnership with Nissan and Indian firm Bajaj.
Renault is yet to announce details of the car, but it's expected to use a 600cc petrol engine.
Economy is the main aim of the engine and Renault is aiming for 80.0mpg and a top speed of 60mph.
There are no plans to sell the Renault ULC in Europe.
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